The Indian drone company is growing rapidly as a consequence of new opportunities provided by the Indian government. India aspires to be a worldwide drone industry by 2030. The drone business in India is predicted to increase from Rs. 2,900 Cr in 2020 to Rs. 2,95,000 Cr by 2030. The rise of indigenization development is accelerating the drone industry.
Here are two drone stocks with net profit CAGR of up to 43%
Solar Industries India Ltd
Solar Industries is a world leader in the production of bulk explosives, packaged explosives, and initiating systems, which are used in the mining, infrastructure, and construction sectors.
The company develops fragmentation cum burst weapons measuring 01- 10 kg that may be dropped from individual drones or swarms of drones. Meanwhile, Solar Industries’ subsidiary developed warheads, armored vehicles, and civic or field fortifications.
The company’s revenue has increased from Rs 2,237 crore in FY 19-20 to Rs 6,923 crore in FY 22-23 during the past three years. During the same period, net profit increased from Rs 279 crore to Rs 811 crore, accounting for 43 percent of the 3-year CAGR.
Solar Industries India shares were trading at Rs 4,829 on Friday, up 2.90 percent from the previous close price. The company has a market capitalization of Rs 43,661 crores.
Company shares have delivered a 27 percent return in the last six months and 30 percent in a year.
In April 2023, Solar Industries was awarded a contract to supply the Indian Army with the unmanned aerial vehicle (UAV) ‘Nagastra,’ which was created by Economics Explosives Ltd (EEL), a 100 percent subsidiary of the business.
The company has taken initiatives to produce a wide range of weaponized drones to neutralize various targets using gravity drop bombs and guided missiles.
Paras Defence and Space Technologies Ltd
Paras Defence and Space Technologies develops, manufactures, and tests a wide range of defense electronics and space application equipment.
Paras Aerospace is the only drone firm with in-house camera payload production, as well as electronics, sophisticated composite, and hardware capabilities.
During the fiscal year FY 22-23, the company launched the PARAS.AI (artificial intelligence) drone information technology solution to address the data processing demands of the powerline, solar, wind, mining, and pipeline inspection sectors.
The company’s revenue has increased from Rs 147 crore in FY 19-20 to Rs 214 crore in FY 22-23 during the past three years. During the same period, net profit increased from Rs 20 crore to Rs 36 crore, accounting for 21 percent of the 3-year CAGR.
Paras Defence and Space Technologies shares were trading at Rs 733.50 on Friday, up 0.70 percent from the previous close price. The company has a market capitalization of Rs 2,862 crores.
Company shares have delivered a 63 percent return in the last six months and 24 percent on a year-to-date basis.
Written by Omkar Chitnis
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